Human wants are unlimited and the resources to satisfy them are scarce and are of alternative uses; therefore, human behavior takes the form of choosing. This give rise to the problem of how it uses scarce resources of alternative uses to attain maximum satisfaction. This is generally termed as economic problem.
Reason Responsible for Arising:
- Unlimited ends or wants
- Scarce resources
- Alternative uses of resources
- Difference in intensity of ends
May 06, 2017